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Bell Microproducts Europe today announces the acquisition of a major new logistics facility at ProLogis Park, Hams Hall in the West Midlands. Hams Hall is one of the UK’s leading distribution centres at the heart of Britain’s motorway network and is also served by rail and international airport hubs.

“We have chosen this site given the soaring increase in our business over the past two years and the prospective growth we anticipate in both the UK and Europe in the years ahead,” says Steve Lundy, chief finance officer, Bell Microproducts Europe, wholly owned subsidiary of U.S. Bell Microproducts Inc. “The newly built facility is in the process of being fitted out with state-of-the-art logistics equipment. Combined with our proven warehouse management system, we will have a logistics facility to ensure we maintain our leading position.”

The facility will hold more than three times the capacity of Bell’s existing European warehouse in Chessington which will become the focus of the group’s ever expanding Storage and Server Solutions Business.

“This demonstrates that the Bell Group’s stated aim of being the leading data storage distributor in Europe is not just talk,” comments Ian French, President of Bell Microproducts Europe. “All the teams at Bell Microproducts Europe and at Ideal are delighted with this demonstration of new investment into the business. It is our intention to become the partner of choice for any Storage focussed reseller and manufacturer throughout Europe.”


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The group anticipates significant efficiencies in like-for-like warehousing and logistics costs as a result and also aims to improve delivery services for all UK and European partners with this relocation. The anticipated growth in storage business over the next few years will require an ongoing focus on excellence in warehousing and logistics and the Hams Hall facility will be at the heart of the group’s European logistics infrastructure.

Don Bell, CEO of Bell Microproducts Inc. says “with acquisitions we have already made in Europe and the continuing ambitious expansion plans that the group has in place, the new state of the art facility is a further sign of our determination to ensure that existing business is better served and future business fully planned for.”

The announcement brings with it a period of consultation with staff before final plans are implemented.
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For further information please contact:

Wai Tang Bell Microproducts Europe 020 8286 5000
wtang@ideal.co.uk

Sharon Smith Bell Microproducts Europe Press Office 020 7375 3633
ssmith@metro-media.co.uk

Editor’s Notes:
Bell Microproducts Inc is an international value-added provider of a wide range of high technology products, solutions, and services to the industrial and commercial marketplace. The company's offering includes semiconductors, computer platforms, peripherals, and storage products of various types including desktop, high-end computer and storage subsystems, fibre channel connectivity products, RAID, NAS and SAN storage systems and back-up products. Bell Microproducts is an industry-recognized specialist in storage products and is one of the world's largest storage-centric value-added distributors. The company's products are available at any level of integration from components, to subsystem assemblies, to fully integrated, tested and certified system solutions. The company adds value with a broad range of services including testing, software loading, kitting, mass storage system integration, and computer system integration. Trained and certified technical personnel compl!
ete each of these processes at Bell Microproducts' ISO 9002 facilities. Bell Microproducts markets and distributes more than 150 brand name product lines, as well as its own BellStor storage and Trademark(R) computer brands, to original equipment manufacturers (OEMs), contract electronic manufacturing services (EMS) customers, value-added resellers (VARs) and system integrators in the Americas and Europe. More information can be found in SEC filings, or by visiting the Bell Microproducts Web site at http://www.bellmicro.com


Note: This release may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements, which reflect the Company's current views of future events and financial performance, involve known and unknown risks and uncertainties which could cause actual results or facts to differ materially from such statements for a variety of reasons including, but not limited to: the ability to successfully integrate the operations of recent acquisitions, industry conditions, changes in product supply, pricing, and customer demand, competition, other vagaries in the computer and electronic components markets, changes in relationships with key suppliers, foreign currency fluctuations and the other risks and information described from time to time in the company's reports to the U.S. Securities and Exchange Commission (including the company's Annual Report on Form 10-K and Current Reports on Form 8-K regarding !
this and other transactions). Investors should take such risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any forward-looking statements.


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